abolished all such relics of the barbarous ages. These, in time, will disappear, even in New Jersey and Maryland. The commerce of the whole country will then be subject to no burdens but those that properly belong to it.

"The resume which we have given of the progress, condition and results of the railroads of the United States reflects, on the whole, great credit upon their management, and gives, at the same time, a reasonable expectation of still better results. More progress has been made, within a period of a little over thirty years, in the science of locomotion, than had previously been made during the existence of society. No physical achievement of the race will, in the magnitude and value of its results, bear a moment's comparison with the railway. The progress of the past is a sure guarantee for the future. The improvements that are being made in railway economy are steadily causing the securities of railroads. to be taken up for investment and withdrawn from the arena of speculation. We see no reason for doubting that such in time will be the results with every work having real and substantial merits.''*

*Within five years from the publication of this glowing tribute to the progress of American railways, that is thirty-seven years ago, the Financial and Commercial Chronicle, then, as now, the foremost financial periodical in the country, published a list of 72 railway companies in the United States having a funded debt of over $258,000,000, which were in default for nonpayment of interest. The average rate of such interest was over 7 per cent gold and ran as high as 10 per cent and never below 6 per cent gold. Many of the railway bonds of that period bearing 7 per cent were issued at a price that netted the holder 9 per cent or over and consequently cost the companies a like rate on the proceeds available for construction, equipment, etc.—S. T.

THE FIRST GERMAN RAILWAY

(Zeitung des Vereins Deutscher Eisenbahnverwaltungen.)

On December 7, 1910, seventy-five years had elapsed since the opening of the first German railway, the Ludwig line from Nuremberg to Fürth. The beautiful old town of Nuremberg, for centuries a centre of highly-developed art and flourishing commerce, has the distinction of being the first German town which understood how to profit by the brilliant success of the steam railway from Liverpool to Manchester which was opened on 15 September, 1830, and to carry out the scheme of building a railway, in order to connect it with its flourishing sister town, Fürth. The interesting early history of this line shows how difficult it was for human minds to grasp such remarkable innovations and how many obstacles arose to hamper the carrying out of the scheme.

We will here give some particulars of the creation of this line. The project of connecting Nuremberg and Fürth by a railway first matured in the mind of a Nuremberg citizen, Johannes Scharrer, the founder of the Nuremberg hop trade, who also subsequently remained the chief head of the undertaking. He was joined by men such as Platner, the great capitalist, Bäumen, the first mayor of Fürth, and others; and in 1832 they first published their plan, which had been well thought out both technically and economically. Its effect on public opinion was very diversified, as no experience on the subject was available. Determinations were made of the traffic between the two towns, and professor Kuppler, who had published an opinion, favourable to the project, in the Polytechnische Zeitung, after a survey, made a plan of the line, designs for all constructional works and a preliminary estimate of the cost. Thereupon the "provisional committee" which had been formed invited the public to subscribe for shares, and issued a prospectus in which attention was drawn, inter alia, to the importance of the invention itself, to the quickness with which passengers and goods could be conveyed, and to the good results of the Liverpool-Manchester line. The incalculable importance of the invention of railways was eloquently proclaimed, and it was stated that this means of communication, emulating the flight of birds, would make distances smaller, would bring states and nations nearer to each other, and give mankind a greater mastery

*NOTE: These figures are taken from the last official statistics of German Railways, the road itself being distinguishable on the official map, running from Nuremberg 604 kilometers to Furth, where it ends abruptly.-S. T.

THE MINNESOTA RATE CASE

BY CHARLES E. OTIS,

Special Master in Chancery.

IN THE UNITED STATES CIRCUIT COURT,

DISTRICT OF MINNESOTA, THIRD DIVISION.

On May 4, 1908, ex-Judge Charles E. Otis was appointed by the Hon. Walter H. Sanborn, senior United States Circuit Judge of the Eighth Judicial Circuit, Special Master in Chancery to take testimony, examine the evidence, make all necessary computations, find and state the facts in several suits instituted by stockholders of the Northern Pacific Railway Company, the Great Northern Railway Company and the Minneapolis & St. Louis Railroad Company, to restrain them from putting in force certain orders of the Railroad and Warehouse Commission, reducing rates and fares in the State of Minnesota.

On September 10, 1910, the Special Master rendered his decision sustaining the position of the stockholders and filed an exhaustive review of the evidence and law in the case.

On April 8, 1911, Judge Sanborn entered a decree affirming the report of Special Master Otis and enjoined the enforcement of the reductions ordered by the Commission.

The statement of the case, facts and law, as set forth in the findings of the Special Master, making a pamphlet of 161 pages, have been condensed, with his permission, for the Railway Library -being confined, at the suggestion of Judge Otis, except as noted, to the case of the Northern Pacific, for the sake of brevity:

LEGISLATION AND MATTERS PERTAINING THERETO.

By Chapter 28 of the Revised Laws of Minnesota, 1905, the general supervision of railroad companies doing business in Minnesota is vested in the Railroad and Warehouse Commission, with power to adjust and fix rates and prescribe rules and regulations for the conduct of the business of such companies.

During the session of 1905 a joint resolution was passed by the Minnesota Legislature directing the Commission "to undertake the work of securing a readjustment of the existing freight rates in this state, * * * * to secure a substantial reduction in existing merchandise rates." At the same time funds were pro

vided to enable the Commission to secure a physical valuation of all railroad properties in the state.

With reference to rates, complaints were almost invariably based on one of two claims-that somebody in the same or a nearby town was getting a better rate, or that the rate to some particular town was unreasonably high as compared with the rate to some other town on the same or some other line with reference to relative mileage.

Discrimination between localities and shippers, not excessive rates, was substantially the only ground of complaint.

Previous to this time the Commission had not undertaken to prescribe general schedules of tariffs covering all articles and commodities.

Pursuant to the mandate of this legislation, on September 6, 1906, the Commission made up and completed full schedules of rates, covering all merchandise, to take effect November 15, 1906. The schedule of rates so ordered was enacted into law by the Legislature in the spring of 1907.

At the same session (1907) the Legislature passed the so-called two-cent passenger law, prescribing two cents a mile for passengers twelve years of age or over, with baggage not exceeding 150 pounds, and one cent per mile for passengers under twelve years of age with baggage not exceeding 75 pounds. Previous to this the maxima had been 3 cents and 112 cents, respectively.

The railroad companies put the 2-cent passenger fare into effect April 4, 1907, and were about to do likewise for the commodity rates when restrained by the injunctions obtained by the stockholders.

Summarized, the reductions in rates which may be charged by railroad companies for interstate transportation within the State of Minnesota, so made by its Legislature and Commission and challenged by these suits, are briefly, as follows:

1. Reduction in rates on general merchandise amounting to from 20% to 25%. (Commission's order of Sept. 6, 1906.)

2. Reduction in maximum rates on passengers amounting to 33 1/3%. (Sessions Laws of 1907, Chap. 176.)

3. Reduction in rates on grain, lumber, live stock and coal amounting to 7.37%. (Sessions Laws of 1907, Chap. 232.)